Globalization has made the world a small place. A big credit of this achievement goes to the various supply chain companies operating 24×7 to transport goods in different corners of the world. It won’t be an understatement if we say that the supply chain management companies are the blood running through the veins of the global economy.
But like all industries, the supply chain industry also has its own sets of problems. The highly interconnected nature of the business means that even a single miss in synchronization can result in monumental losses.
With the boom experienced in e-commerce, businesses are becoming global, fuelling the demand for a more efficient and fast supply chain. Managing supply chains has become more involved with an unprecedented rise in volumes of goods handled. Issues like unreliable suppliers, delayed shipments, and wrong order delivery have increased.
Big Data Analytics is proving to be a game-changer for many modern-day businesses, then why should supply chain lag behind?
How is Big Data Analytics transforming Supply Chain Management?
There are numerous ways by which the Big Data Analytics is helping to transform supply chain management and logistics industry. Here are some of the top factors to look for;
Data Accuracy
The most critical factor deciding the success of any Big Data Analytics system is the accuracy of data. If the data provided is not accurate, then your Supply Chain won’t be able to derive correct inferences from this data.
Before
Before the advent of Big Data Analytics systems, all the data was entered manually by humans. The process was error-prone, and this led to a lot of inaccuracies creeping into the data. Incorrect data led to wrong decisions as the decisions were based on the credibility of the data.
After
With today’s supply chain systems acquiring data from multiple sources in real-time, it is impossible to do data entry manually. Modern-day Big Data Analytics solution providers are using the power of automated data collection to improve data accuracy.
Using data collected from IoT sensors and other devices, the Big Data Analytics systems are improving the quality of data, helping the management in taking correct decisions faster.
By implementing automated data collection systems, you will shelve off considerable burden off your IT department. Earlier IT staff had to ensure that everyone within the supply chain management firm company (Production, Marketing, HR, Executives) was looking at the same data. Big Data Analytics systems can thus help in addressing supply chain challenges in an effective manner.
Cost Control
Supply chain firms need to be efficient in monitoring their costs. With the expenses like fuel, labour rates, trade restrictions, rising commodity prices and growing freight costs, the supply chain industry need to keep a tight leash on their operating costs which can otherwise spiral out of hand in no time.
Before
A supply chain logistics company had to monitor various costs continually. It had to enter the data manually, and if there was a significant change in the input costs of one of the cost components, then the company had to revise the prices of its services accordingly. It led to a lot of trouble for both ends; At the supply chain company and its customer.
After
With the advent of Big Data Analytics systems, it has become pretty easy to keep track of various input costs. Using methods like transportation management systems, the supply chain management organizations can manage their fleet efficiently minimizing the operational costs.
By applying Big Data Analytics systems in the supply chain, supply chain management can provide their managers with real-time actionable information which makes the process of supply chain logistics smoother.
Big data systems allow the managers to adhere to their cost control plan by notifying them whenever there is a deviation from the plan. Big data supply chain solutions provide a complete view of the component cost of products, allowing the purchase managers of the company to make better decisions.
Predictive analytics Software can let the route managers know a traffic jam in advance, allowing them to re-route their fleet. Saves valuable time and inhibits cost overruns due to failed deliveries. Big Data Analytics can also help in optimizing the fleet size and in improving the load planning of goods, helping to reduce costs.
Sophisticated Big Data Analytics algorithms can help in reducing the supplier inefficiencies by selecting the correct supplier. A wrong supplier can increase the costs considerably. And with globalization reaching its peak; it is becoming challenging to manage an army of suppliers scattered all across the globe.
Big Data Analytics systems analyze every supplier and empower the sourcing managers by advising them on supplier selection. Use the Big Data Analytics services of top service providers to achieve better cost control.
Predicting Customer Behaviour
A study concluded that companies considered to be leaders in supply chain visibility could satisfy their customers 96% of the time. Big Data Analytics helps supply chain companies in predicting customer behaviour, improving their supply chain visibility many-fold.
Before
Finding the needs of customers was so tricky earlier. Supply chain companies thought that their job was to deliver the products within the stipulated period. But with rising competition, clients demand much more.
After
By using smart predictive analytics, the Big Data Analytics companies can now provide you with a wholesome view of your customer’s requirements. The systems allow you to gain a better understanding of the personal preferences of the customers.
For instance, using Big Data Analytics, you can find out that your client can benefit from shipping goods through air cargo rather than through ships to a particular location. You can suggest reducing airfares for this specific customer. It will create a win-win situation for both; you as well as your customer.
Using predictive analytics, supply chains can become proactive rather than being reactive. By identifying the needs of the customers in advance, you will gain an unassailable lead over your competitors.
Big data can also help you in providing the ideal solution once you identify the customer’s problem. Thus, allowing you to combine predictive analytics (identifying the problem) with prescriptive analytics (providing a solution).
One of the world’s leading logistics companies DHL has published a white paper which highlights how predictive analytics can help supply chain companies.
Assessing Supply Chain Risk
The business of logistics is plagued with various uncertainties, both internal as well as external. Intelligent planning and forecasting abilities are required to mitigate these risks, which can otherwise prove to be detrimental to the business.
Before
Supply chain logistics companies had no way to assess various external uncertainties like predicting weather conditions, fluctuations in pricing and political situations. These uncertainties are a part of the daily lives of a supply chain business. Earlier due to lack of resources supply chain companies were unable to assess these risks running into heavy losses.
After
Advanced analytical algorithms can help the supply chain business in taking an educated guess.
Big Data Analytics systems, combined with machine learning algorithms and advanced sensing devices, prove to be a powerful combination that provides much-needed leverage to the supply chain business.
By acting as early warning systems, Big Data Analytics systems can help a supply chain company in mitigating risks.
With Big Data Analytics, supply chain organizations can carefully evaluate risks associated with external factors and avoid them all-together.
Simplifying distribution networks
Before
With time supply chain distribution networks have spiralled into an unending series of warehouses, distribution centres, and factories. Supply chain management has become more difficult due to the complexity of distribution networks.
After
Big Data Analytics systems can help a supply chain company in optimizing the routes and placing the warehouse and distribution centres along the optimized routes. By strategically planning the distribution network, a supply chain logistics company can not only bring down the cost of operations but also free up the workforce occupied in managing such a complex system.
These human resources can then be utilized in a better manner improving the productivity of the supply chain company.
The last mile
Big Data Analytics systems have a crucial role to play in making supply chains future-ready. As the level of uncertainties in global business rises, the complexities faced by these supply chain companies will also increase.
Big data systems have the potential of enhancing the performance of a supply chain by improving its visibility, by managing risks and by reducing the fluctuations in cost. No supply chain management can afford to ignore the role of Big Data Analytics.
You can take the help of expert Big Data Analytics companies that will aid you in keeping up with the latest Big Data Analytics trends in the market.
